Loading page
About this tool
Draft a gym or club membership refund, freeze and transfer policy and price a pro-rata cancellation against it.
The Membership Refund Policy Generator drafts the cancellation, freeze and transfer terms for a gym, studio or club, and prices a real cancellation using the pro-rata rule: plan fee multiplied by unused days divided by total days in the term. Days spent on a freeze are treated as suspended rather than consumed, so they never reduce the refund, and GST is returned only on the refunded slice in line with CBIC Circular No. 178/10/2022-GST. It is aimed at owners and front-desk teams who need one written answer that applies to every member.
Open Membership Refund Policy Generator on AltFTool — it loads instantly in your browser.
Provide your input — an image, text, or data.
Let the tool analyze or generate the result.
Review, refine, and reuse the output wherever you need it.
Refunds follow unused days over term days, the calculation a consumer forum will expect to see.
Frozen days extend the end date and are excluded from used days, so members are not charged twice for the same pause.
Lock-ins over six months and exit charges that consume the whole refund trigger a warning before you publish them.
Multiply the plan fee by the unused days and divide by the total days in the term. On a Rs 36,500 annual plan running 1 January to 31 December, a cancellation on 1 July leaves 184 unused days of 365, so the pro-rata refund is Rs 18,400 before any cancellation charge.
A lock-in disclosed before payment is a contract term, but it is not unchallengeable. Section 2(46) of the Consumer Protection Act 2019 lets a consumer commission examine a term that imposes an unreasonable condition putting the consumer at a disadvantage, and a lock-in never protects a club that itself closes, relocates or withdraws the facility.
GST comes back only on the amount actually refunded. Fitness and health club services (SAC 999723) are generally taxed at 18%, and under CBIC Circular No. 178/10/2022-GST dated 3 August 2022 any cancellation charge the club keeps is itself taxed at that same rate, so that tax stays with the government.
No. A freeze suspends the entitlement, so the end date should move forward by exactly the number of days frozen and those days should not be counted as used when a refund is worked out. Writing that rule into the policy, along with the yearly allowance and minimum freeze block, prevents most membership disputes. This is general information, not legal advice.